Each month, Microsoft refines its Product Terms to align with evolving compliance, security, and service strategies. The September and October 2025 updates include rebranding within Microsoft 365, new Azure and privacy clauses, and additional clarifications for Copilot and Exchange Server. Below, we summarise the key changes and why they matter.

Microsoft 365: Rebranding and Simplified Licensing

Microsoft has restructured its Microsoft 365 security and compliance offerings:

• Microsoft 365 E5 Security now Microsoft Defender Suite
• Microsoft 365 E5 Compliance now Microsoft Purview Suite
• Microsoft Defender Threat Intelligence removed from Availability and Prerequisite Tables
• Added Microsoft Defender Suite for Business Premium and removed Microsoft 365 Business Premium as a prerequisite for Microsoft 365 Defender Suite

These changes streamline the Microsoft 365 ecosystem by consolidating product names and reducing prerequisites.

Why it matters:
The rebranding underscores Microsoft’s strategy to simplify its security and compliance portfolio under the Defender and Purview brands. Organizations should review their existing licensing bundles to confirm they reflect the updated product names, particularly where prerequisites have changed.

Privacy & Security Terms: New Clauses and Clarifications

A series of updates were made across September and October to enhance clarity and ensure alignment with Microsoft’s expanding AI and cloud services portfolio:

• M365 Copilot Chat added under Location of Customer Data at Rest for Core Online Services.
• A new Microsoft Dragon Copilot clause introduced under the Exceptions to the DPA table, confirming that free trials follow the same 90-day retention and deletion rules as subscriptions.
• Purview Services portfolio updated, reflecting the rebranding noted above.
• New EU Data Act terms added to address evolving European regulatory requirements.

Why it matters:
These adjustments reflect Microsoft’s ongoing effort to maintain transparency and compliance across its AI-enabled and data-driven services. Customers operating within the EU should ensure data handling and retention practices align with the updated DPA terms and the new EU Data Act obligations.

Microsoft Dragon Copilot: Trial Enablement and Program Expansion

Dragon Copilot terms have now been enabled for the Microsoft Online Subscription Agreement (MOSA) program to support free trials.

Why it matters:
Organizations testing Microsoft’s latest Healthcare AI assistant features under the MOSA framework can now do so with clearer licensing and retention policies, ensuring compliance during evaluation phases.

Microsoft Azure: New Connectors and Compliance Updates

Azure has seen several additions and clarifications:

• Firmware Analysis and Azure IoT Operations connectors added to Azure terms.
• Updated Teams API terms for security apps to comply with EU regulatory standards.
• Azure Marketplace usage terms hyperlink updated for easier reference.

Why it matters:
Microsoft continues to extend Azure’s functionality while ensuring regulatory compliance across data and API usage. Developers and compliance teams should review new API terms to confirm adherence to EU security requirements.

Exchange Server: Availability Clarifications

The Exchange Server Availability table has been updated to clarify access across different licensing programs.

Why it matters:
While a minor administrative change, customers with hybrid Exchange environments or multiple agreements (EA, CSP, MCA) should verify the program availability to prevent licensing inconsistencies.

Windows Desktop & Windows 365 Updates

• Windows 10 ESU now available via CSP, with updated MCA availability.
• Cross-region Disaster Recovery (DR) add-on launched for Windows 365 Frontline (Dedicated mode).
• EA/EAS and EES availability tables expanded to include GCC and GCCH regions.

Why it matters:
As Windows 10 went out of support in October 2025, these ESU additions provide organizations with more flexibility for secure continuity options.

Visual Studio: Subscription Launches

Visual Studio Subscriptions are now available through the Microsoft Customer Agreement (MCA).

Why it matters:
As more organisations will move towards the MCA, this expands accessibility for developers under flexible subscription models, enabling more organizations to standardize software development environments.

Final Thoughts

Microsoft’s September and October Product Terms reflect its continued focus on compliance, simplification, and AI integration across its cloud and productivity ecosystems.

Keeping track of these updates is essential for ensuring accurate licensing, managing data responsibly, and maximizing your investment in Microsoft technologies.

How ITAA Can Help

Interpreting Microsoft’s Product Terms can be complex, especially as AI and compliance requirements evolve. ITAA’s independent experts can help you:

• Review your licensing position under the latest Product Terms
• Assess the impact of AI, security, and privacy updates
• Develop a compliant, cost-efficient Microsoft strategy

Contact ITAA today to discuss how these changes impact your organization.

Our 2025 Microsoft Product Terms Updates

Read the rest of our summaries on Microsoft Product Terms updates for 2025 here:

• January
• February
• March
• April & May
• June & July
• August
• September & October

Robert Wright, Microsoft Consultant

Robert Wright is an ex-Microsoft auditor turned Licensing Consultant. He focuses on license compliance with a strong emphasis on cost-saving strategies. With a proven track record, he excels in optimizing licensing portfolios across various industries, particularly in the public sector.